Payfare Inc., a leader in Earned Wage Access (EWA) and digital banking solutions, has announced its acquisition by Fiserv, Inc., a global provider of financial services technology. The CA$201.5 million all-cash deal, representing a significant premium, promises to accelerate financial innovation for workforce payments.
Key Details of the Transaction:
1. Acquisition Overview:
- Purchaser: 1517452 B.C. Ltd., an affiliate of Fiserv, Inc.
- Purchase Price: CA$4.00 per share in cash.
- Total Consideration: Approximately CA$201.5 million.
- Premium: 90% over the December 20, 2024, closing price and 92% over the 60-day average trading price.
2. Strategic Benefits:
- For Shareholders:
- Certainty of value with an all-cash offer.
- Significant premium reflecting Payfare’s growth and market position.
- For Fiserv:
- Strengthens workforce payment solutions for gig-economy companies.
- Expands embedded financial services offerings.
3. Approvals and Conditions:
- Requires approval from 66 2/3% of shareholder votes and a majority of minority shareholders under MI 61-101.
- Subject to court approval, third-party approvals, and customary closing conditions.
- Expected Closing: First half of 2025.
4. Governance and Process:
- Oversight by a Special Committee of independent directors.
- Unanimous recommendation from the Board to approve the transaction.
- Support from all directors and senior officers, representing 11.3% of issued shares.
5. Post-Transaction Plans:
- Payfare shares to be delisted from the TSX and OTCQX.
- Application to cease reporting under Canadian securities laws.
- Payfare’s talented team to join Fiserv, driving innovation in financial services.
Statements from Leaders:
- Marco Margiotta, CEO, Payfare:
“This transaction highlights Payfare’s achievements and offers certainty of value to shareholders. It’s a recognition of our innovation and a step toward an exciting new chapter.” - Frank Bisignano, CEO, Fiserv:
“Payfare’s innovative workforce payment solutions align with Fiserv’s vision. Together, we aim to accelerate embedded finance solutions globally.”
The acquisition of Payfare by Fiserv marks a transformative step for both companies. With its innovative EWA solutions, Payfare will complement Fiserv’s global expertise, paving the way for enhanced financial services and workforce empowerment.
